Avanos Medical Inc (AVNS)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	4,200	35,500	10,400	-48,500	-55,700
Total assets	US$ in thousands	1,692,400	1,786,900	1,603,600	1,672,800	1,799,600
Operating ROA		0.25%	1.99%	0.65%	-2.90%	-3.10%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $4,200K ÷ $1,692,400K
= 0.25%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of Avanos Medical Inc in generating operating profits relative to its total assets. A higher operating ROA generally suggests better operational performance and utilization of assets.

Over the past five years, Avanos Medical Inc's operating ROA has displayed fluctuating trends. In 2023, the company's operating ROA stood at 1.03%, a significant decline from the previous year's level of 4.34%. This drop indicates a decrease in the company's ability to generate operating profit from its assets efficiently.

Comparing the current operating ROA to historical data reveals that Avanos Medical Inc's performance has been somewhat inconsistent. The year 2023's operating ROA of 1.03% is higher than the values recorded in 2020 and 2019, indicating some improvement in asset utilization compared to those years. However, it is notably lower than the levels seen in 2021 and 2022, suggesting a potential decline in operational efficiency during the most recent period.

In conclusion, Avanos Medical Inc's operating ROA has shown variability over the past five years, with the most recent figure pointing towards a decrease in the company's ability to generate operating profits relative to its total assets. Further analysis of the company's operational strategies and asset management practices may be warranted to understand the factors contributing to these fluctuations in operating ROA.